Sequel to sustained series of criticisms and pressures on the tax reform bills forwarded to the National Assembly by President Bola Tinubu, the Senate yesterday halted further legislative actions on the bills.
The decision was taken following the leadership of the Senate’s meeting with the Presidency on how to resolve the issues that arose from the bill which were heating up the polity.
Notably, the strongest opposition to the tax bills came from the North, with Senator Ali Ndume as arrow head of the opposing legislators.
Governors Babagana Zulum of Borno, and Sule Abdullahi of Nasarawa, Northern Elders Forum, NEF, National Economic Council, NEC, chaired by Vice President Kashim Shettima, were among those who kicked against the bills, and urged further and wider consultation.
Meanwhile, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Mr. Taiwo Oyedele, said yesterday efforts were being made to protect the interests of states opposed to the proposed bills.
Following these sustained attacks from within and outside, the Senate bowed to pressure yesterday and reached a resolution to suspend its decision to carry out a public hearing on the bills.
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Consequently, it set up a 10-man committee to meet with the Attorney General of the Federation and Minister of Justice on ways to resolve the contentious issues in the bills.
The Senate asked its committee on finance to stop further action on the tax bills that passed for second reading last week.
This was made known by the Deputy President of the Senate, Senator Jibrin Barau, who presided during yesterday’s plenary.
The Senate Minority Leader, Abbah Moro, will chair the committee that will liaise with the Attorney-General of the Federation and Minister of Justice to eliminate the contentious clauses in the tax bills.
Other members of the committee are Adamu Aliero Orji Kalu, Seriake Dickson, Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Adeola Olamilekan, Sani Musa and Adetokunbo Abiru.
Barau said: “On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country.
“The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.
“The Senate like similar bodies globally, serves as a stabilizing force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.
“In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.
“In collaboration with the executive arm of government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.
“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.
“The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges. We also agreed that no other issues should aggravate the country’s current difficulties.
“It has been mutually decided between the executive and the Senate to engage the Judiciary to sort out these matters.
“The Attorney General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.
“Tomorrow the committee established by the Senate, along with its leadership, will meet with the Attorney General to address these issues.
“Consequently, the Senate committee on finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”
The Derivative clause and the Value Added Tax, VAT, sharing formula have been major sources of conflict.
The other stumbling block to the tax bills has been alleged “ hidden agenda” especially in the timing and the haste with which the tax bills are being pushed through.
On September 3, 2024, President Bola Tinubu transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele for the review of existing tax laws.
The bills include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
